NJ BAIT

[ll27]

how to i elect to utilize the NJ BAIT(business Alterative income tax) program on an S corp tax return? 

[SS46T]

I have the same question. I can't find the field to report NJ BAIT payment made by S.Corp for its owner in Business Tax Return

[ZoltanB45]

That payment  would be made here Pass Thru BAIT as you may have already done, so there is no entry needed in the business return. It would be recorded on the individual return.

[SS46T]

Thanks very much for your reply. Mine is single member SCorp. The NJ BAIT tax payment is made by SCorp after registering at NJ  Pass Thru BAIT.  

However as the BAIT enables owners of PTEs to reduce their federal taxable income by remitting this entity-level tax on its New Jersey-sourced income, where in 1120S this payment should be shown? As State Taxes paid?

[ZoltanB45]

Enter it as a business expense under taxes, states taxes paid. This way it reduces the federal taxable income on your personal return, which is what the intention was for the program. 

[SS46T]

Appreciate very much. This helps.

[Mike7388]

On what Form or Schedule on my personal tax return would I list this as you describe in your response ("Enter it as a business expense under taxes, states taxes paid").  Thanks!

[DianeW777]

The credit seems to be a state income tax payment made by the entity and then passed over to the individuals as a credit towards their tax liability.  It is used to offset the tax on the individual return. The credit may not reduce the tax liability below the statutory minimum tax. Excess credits may be carried forward for twenty years. 

• NJ BAIT Information
• Corporation Minimum Tax Rates

You can enter the amount you are able to utilize for the credit amount and you could enter it as follows:

1. Enter your K1 in the federal return under S-corps, Partnerships, and Trusts > K-1
2. Once you begin your state return, you will come to the screen 'Schedule NJ-K-1 Received?' answer 'Yes'
3. Continue through the NJ K-1 screens until you each 'Pass-Through Business Alternative Income Credit' entry
4. Enter your BAIT amount from your K-1.
5. See the images below.

BAIT Extension Information: 

Returns due between March 15, 2022 and June 15, 2022 are now due by June 15, 2022.This includes the 2021 PTE Election, 2021 PTE-100 Tax Returns, 2021 PTE-200-T, 2021 Revocation forms, and 2022 Estimated Payments.

• Chapter 320 Corrected Copy

[JoeS7]

I am preparing a return for an LLC and it is a lower tier partnership.  I filed the NJ Bait Election and Paid the BAIT Tax.  Does 2022 Turbo Tax for Business provide for an NJ PTE -100 and NJ PTE K-1?  I could not find them in Forms.